President Barack Obama and his political opponents have failed so far to agree on a way to roll back automatic spending cuts that took effect Friday. Those cuts slash $85 billion from the nation's budget, which could slow down the economy.

U.S. lawmakers say they want to undo the cuts so that federal programs can be spared but are divided over whether higher taxes should be used to pay for them.

Evan Lucas of IG Markets in Melbourne said he believes the budget fight is just "another political distraction that will cause some investors to cash out and buy back in on the dips."

Benchmark crude oil fell and was below $91 per barrel. The dollar gained against the euro but fell against the yen.